Missouri schools could see new performance incentives under emerging proposal

by Annelise Hanshaw, Missouri Independent
December 4, 2025

A possible incentive program for Missouri school districts is beginning to take shape as a group charged with crafting the proposal signed off on the program’s framework Wednesday afternoon.

The Missouri School Modernization Task Force’s performance incentive working group completed its final meeting Wednesday before it presents recommendations to the larger group in January. The three other working groups have at least one more meeting each before their recommendations are finalized and become public.

Providing financial incentives for school districts to improve student achievement is a new concept, with few states using outcome-based funding models. But under an executive order from Gov. Mike Kehoe, Missouri may be poised to give the idea a try.

A memo from the nonprofit Aligned, an education-policy group focused on workforce development, noted that the idea of incentives had “potential” but could be a source of inequity. The brief, written by Aligned’s Kansas Director of Policy and Research Eric Syverson, looked at a program in Arizona that gave additional funding to high-performing schools. 

“Most dollars flowed to already advantaged schools,” he wrote, noting that Arizona lawmakers shut down the program in 2024.

Creating equitable incentives was a key focus of the working group’s meeting Wednesday, as members questioned whether their plan served all students across the state.

The framework the group is pursuing gives extra funding to districts when students reach achievement levels or hit growth targets in the areas of early literacy, middle school math and language arts and college and career readiness. A committee would be formed to articulate precise targets.

The program would be funded through a separate line item in the state budget, with a target funding level of $50 million, according to draft recommendations.

One part of the plan split the panel, though, as members debated whether or not the performance of certain student groups should have higher awards for schools. Kari Monsees, the state education department’s semi-retired finance chief, proposed a larger bonus when English-language learners, low-income students and those in special education reach performance targets. His recommendations were based on the group’s prior meetings, not necessarily the opinions of the state education department.

Chris Vas, a senior director with the Herzog Foundation, questioned why some students’ performance would trigger higher funding than others.

“We are basically telling students that certain students, we care more if they grow than others,” he said. “And that’s where (schools) will put their focus.”

The state gives additional funding for schools to educate students in these groups, Vas said, saying that any additional resources needed should come through the formula that funds schools rather than an incentive program.

Monsees said he worried that removing the boost would hurt districts with a greater population of low-income students and English-language learners.

“It is possible that the weightings (in the formula) are never going to be enough to meet the needs and close those gaps in every case, so having the extra incentive still could provide additional value,” he said.

Michael Podgursky, an economics professor at the University of Missouri–Columbia, said the program could be a source of inequity without the extra funding for dedicated student groups. Eliminating this piece would cause “a disproportionate share of the bonus funding will go to wealthier school districts,” he said.

The group based its model off of Tennessee’s outcome-based incentives, which doubles financial incentives when economically disadvantaged students hit performance targets.

Tennessee is in its third year with its current funding model, including the performance incentives. Monsees spoke to Tennessee’s education finance officer, who said the state has seen growth in achievement but also had numerous factors leading to this improvement.

“Not a lot of states have done this type of incentive type work, so we’d be among a small number that would be heading down this path,” Monsees said. “There is going to be a lot to be learned, both by our own state and by continuing to study others.”

Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: [email protected].